Carly Posts 41% Customer Receipt Growth and Highest Subscription Revenue Ever

Strong Subscriber Growth Drives Revenue Milestones

Carly Holdings Limited (ASX:CL8) has delivered a robust performance in the December 2024 quarter, marked by a 41% increase in customer receipts compared to the same period last year. This surge pushed receipts beyond $1.7 million for the first time, reflecting the company’s expanding subscriber base across consumer and corporate segments. Subscription revenue also hit a record high, climbing 9% from the previous quarter, underscoring Carly’s growing traction in the car subscription market.

The growth was fuelled by a combination of increased consumer subscribers, an expanding corporate customer base, and a notable rise in electric vehicle (EV) subscriptions through the EV Trial initiative. Carly’s focus on flexible vehicle access, including electric models, aligns with broader industry trends towards sustainability and mobility innovation.

Cost Efficiency and Fleet Rationalisation

Alongside revenue gains, Carly achieved meaningful cost reductions. Staff costs fell by 11% year-on-year, aided by a headcount reduction that eliminated over $210,000 in quarterly expenses starting March 2025. Advertising and marketing expenses were trimmed by 18% compared to the prior year quarter, despite subscriber growth, thanks to optimized digital campaigns and strong referral channels.

In a strategic move to enhance fleet efficiency, Carly disposed of $556,000 worth of vehicles during the quarter. The asset-light fleet segment grew to 34% of total fleet size, reflecting increased partnerships with automotive dealers and manufacturers seeking subscription monetisation. This shift supports Carly’s asset-light model, which can improve capital efficiency and scalability.

Liquidity and Funding Outlook

Despite operational progress, Carly’s cash balance declined by $125,000 to $500,000 at quarter-end. The company is actively exploring various funding and financing options to support ongoing growth and fleet expansion. Directors remain vigilant on cash flow management, acknowledging the current stage of business development involves negative operating cash flows that are expected to moderate as subscriber numbers increase.

Carly’s access to asset finance facilities totaling $9.125 million, with $8.925 million drawn, provides some financial flexibility, though the company has reserved unused facilities primarily for vehicle acquisitions. The average interest rate on financed vehicles stood at 9.63%, reflecting current market conditions.

Looking Ahead

With a solid subscriber growth trajectory, record revenues, and disciplined cost management, Carly Holdings is positioning itself as a leader in the Australian and New Zealand car subscription market. However, the company’s liquidity position and funding strategy will be critical to sustaining momentum and capitalising on the growing demand for flexible vehicle access, especially in the electric vehicle segment.